# Activation Rate

> Activation Rate measures the percentage of users who reach a specific milestone or perform a key action within your product that signals they are getting value.

- **URL**: https://dodopayments.com/glossary/activation-rate

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## What is Activation Rate?

Activation Rate measures the percentage of users who reach a specific milestone or perform a key action within your product that signals they are getting value. This metric helps teams understand how effectively they are onboarding new signups and moving them toward long-term retention.

### Why It Matters

- It serves as a leading indicator for future retention and customer lifetime value.

- High activation rates suggest that the product's initial user experience is intuitive and solves a core problem quickly.

- Identifying where users drop off before activating allows product teams to optimize the onboarding flow.

## Learn More

- [SaaS metrics and KPI guide](https://dodopayments.com/blogs/saas-metrics-kpi)
- [How to build predictable recurring revenue](https://dodopayments.com/blogs/build-predictable-revenue)
- [Recurring revenue models and benchmarks](https://dodopayments.com/blogs/recurring-revenue)